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CALGARY, June 15, 2015 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Company") is pleased to advise that Rig 115 has started drilling operations in the Gulf Province of Papua New Guinea ("PNG") under the previously announced two year contract. Although the rig has been generating revenue since late March, the take-or-pay contract term commenced with the spudding of the first well on June 15, 2015.
Tim Braun, High Arctic's CEO, stated; "We are pleased to have Rig 115 operational in PNG, as this rig represents a significant increase to our service capabilities in the country. With the imminent deployment of Rig 116 from Houston, we anticipate the additional revenue generated from these rigs operating in PNG to significantly contribute to the profitability of the Company going forward."
Rig 116 has completed its refurbishment and upgrading in Houston, and is currently being prepared for shipment to Papua New Guinea. It is anticipated the rig will arrive into the country in late August, and once drilling commences it too will be operating under a previously announced two year term take-or-pay contract.
This news release may contain forward-looking statements relating to expected future events and anticipated financial and operating results of the Company that involve risks and uncertainties. Actual results may differ materially from management expectations, as projected in such forward-looking statements, for a variety of reasons, including, but not limited to, market and general economic conditions, and the risks and uncertainties detailed in both the Company's Management Discussion and Analysis for the year ended December 31, 2014 and the Annual Information Form for the year ended December 31, 2014 found on SEDAR (www.sedar.com). Due to the potential impact of these factors, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
About High Arctic
High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol "HWO". The Corporation's principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry.
High Arctic's largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides snubbing services, nitrogen supplies and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada.
SOURCE High Arctic Energy Services Inc.
For further information: Ken Olson, Chief Financial Officer, Phone: 403 580 7836 ext 103, Email: [email protected]